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Cigarette and Tobacco Taxes

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Nebraska Property Tax Relief Proposal by Governor Jim Pillen

Evaluating Nebraska Governor’s Plan for Property Tax Relief

Nebraskans need property tax relief and there are sound ways to provide it. However, increasing the sales tax rate to the highest in the country and dramatically increasing cigarette excises is not sound tax policy. 

5 min read

D.C. Tax Revision Commission Recommends Major Tax Changes

While some recommendations follow the principles of sound tax policy and may improve the District’s tax climate, some proposals make the tax code more complex and less neutral, potentially disincentivizing investment and business activity.

6 min read
2024 State Business Tax Climate Index

2024 State Business Tax Climate Index

In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.

111 min read
Prohibition by price taxes and illicit trade china and cigarette taxes in the united states the deduciton podcast

Prohibition by Price

Step into the shadows of illicit trade where taxation, incentives, and criminal networks intersect to fuel the lucrative cigarette smuggling market.

Cigarettes alternative tobacco products taxation

How Should Alternative Tobacco Products Be Taxed?

The potential for alternative tobacco products to save lives is clear and well established. The framework described in this paper uses a scientific approach to tax strategy that will both reduce harm and create a reliable revenue stream for public expenditures.

17 min read
Taxes and illicit trade China cigarette smuggling us tax revenue impact

Taxes and Illicit Trade

Taxation plays a key role in driving illicit trade. People respond to incentives, and sizable price markups for legal cigarettes create incentives for tax avoidance.

4 min read
2023 state tax changes taking effect july 1

State Tax Changes Taking Effect July 1, 2023

At least 32 notable tax policy changes recently took effect across 18 states, including alterations to income taxes, payroll taxes, sales and use taxes, property taxes, and excise taxes. See if your state tax code changed.

15 min read
NC budget North Carolina tax reform proposals in the NC budget taxes 2023

North Carolina’s Budget Should Prioritize Pro-Growth Structural Reforms

As fiscal year 2023 draws to a close, North Carolina’s House and Senate have each passed their own versions of the biennial budget for fiscal years 2024-25. While legislative leaders have generally agreed to overall spending levels, negotiations remain ongoing to resolve different approaches to tax policy.

7 min read
tobacco tax data cigarette tax data cigarette tax revenue tobacco tax revenue cigarette smuggling data

Compare Tobacco Tax Data in Your State

In the United States, tobacco is taxed at both the federal and state and sometimes even local levels. These layers of taxes often result in very high levels of taxation—the highest of any consumer item. The retail price of cigarettes, for instance, is more than 40 percent taxes on average. In some states, like Minnesota and New York, more than 50 percent of the price paid by consumers comes from taxes.

2 min read
Can States Close Budget Deficits with Excise Tax Hikes, State Tax Hikes, State budget deficits. Sin Taxes. Elizabeth Warren wealth tax

How Stable is Cigarette Tax Revenue?

This web tool allows taxpayers to see how cigarette tax revenues have changed since 1955. Across almost all states, a clear pattern of volatility emerges. Tax rate hikes are met with a momentary bump in revenue, followed by a falloff.

2 min read
Global excise tax trends and global excise tax applications data and research on excise taxes

Exploring Excise Tax Trends

The tax base around the world is shrinking for traditional excise taxes, including taxes on tobacco, alcohol, and motor fuel. But newer excise taxes on things like carbon, cannabis, and ride-sharing are on the rise. What makes a good design for these taxes and where may excise taxes go in the future as the traditional “sin tax” base continues to shrink?

Global excise tax trends and global excise tax applications data and research on excise taxes

Global Excise Tax Application and Trends

When designed well, excise taxes discourage the consumption of products that create external harm and generate revenue for funding services that ameliorate social costs. The effectiveness of excise tax policy depends on the appropriate selection of the tax base and tax rate, as well as the efficient use of revenues.

83 min read

Shrinking Revenue from Sin Taxes: A Small Price to Pay for Healthier Behaviour

Younger and healthier Brits have created a $17.1 billion budget hole by smoking and drinking less. Yet, despite this resounding piece of positive news, some see any decline in tax revenues as a public finance crisis. Excise taxes target a tax base that is intended to shrink. Less consumption is a stated goal of the policy.

3 min read